Using earlier versions of Tor (<0.1.10) I verified that my IP address had
actually changed after changing my proxy setting and starting Tor. I use
Mozilla 1.7.8. With versions 0.1.0 and 0.1.1 no mater what I did the IP
reported was the same and was actually my real IP address. I use Privoxy
and specify port 8118. I have a home network sitting behind a Linksys
router.

Privoxy is correct. I did find that while I initially setup Tor (0.0.9.8)
and it functioned correctly, when I updated to 0.0.9.9 the initial setup
was "passed forward" to the new revision, I did not do any kind of setup,
and it functioned correctly. But, when I updated to 0.0.1.0, the setup was
not passed along. I went back in a reset up Tor, as I did in the beginning
and it now functions. This was entirely my error. But it would be
convenient if successive revisions used the past setup file.

Yes I meant the configuation file torrc. Sorry for the terminology shift. I updated from the first Tor version I had set up and had working, and it continued to work. I just figured that successive revisons would continue to use the intial setup setting. I assumed, and was wrong. My mistake (I'm a chemist, what can I say %^))